US and China Forge Trade Deal Ahead of Trump-Xi Meeting

Tue Oct 28 2025 11:42:56 GMT+0200 (Eastern European Standard Time)

A potential trade agreement framework has been established between the US and China, setting the stage for critical discussions between President Trump and President Xi Jinping.

In anticipation of an upcoming meeting between President Trump and President Xi Jinping, US Treasury Secretary Scott Bessent announced that the US and China have agreed on a framework for a potential trade deal. This includes a final arrangement on TikTok's US operations and a deferral of tightened Chinese controls on rare earth minerals. The two nations are making strides to avert further escalation of their ongoing trade war, with Bessent stating that he does not expect the threatened 100% tariffs on Chinese goods to take effect.

The US and China have agreed the framework of a potential trade deal that will be discussed when their respective leaders meet later this week, the US treasury secretary has said.

Scott Bessent told the BBC's US news partner CBS that this included a final deal on TikTok's US operations and a deferral on China's tightened rare earth minerals controls.

He also said he did not anticipate the 100% tariff on Chinese goods threatened by President Donald Trump coming into force, while China will resume substantial soybean purchases from the US.

Both nations are seeking to avoid further escalation in a trade war between the world's two largest economies.

Trump and Chinese President Xi Jinping are due to hold talks on Thursday in South Korea.

Bessent met senior Chinese trade officials on the sidelines of the Association of Southeast Asian Nations (Asean) summit in Malaysia, which Trump is also attending as part of a tour of Asia. Beijing said they had constructive discussions.

Bessent said the countries had reached a substantial framework for the two leaders, adding: The tariffs will be averted.

The Chinese government said in a statement that both negotiating teams reached a basic consensus on arrangements to address their respective concerns.

Since Trump re-entered the White House, he has imposed and threatened sweeping tariffs on imports from overseas on various countries, arguing that the policy would help boost US manufacturing and jobs. The introduction of tariffs has resulted in many countries, including the UK, agreeing new deals with the US.

The last time Beijing tightened export controls - after Trump raised tariffs on Chinese goods early this year - there was an outcry from many US firms reliant on the materials.

However, earlier this month Trump said he would impose an additional 100% tariff on Chinese goods from November in response to China tightening restrictions on export of rare earths - materials essential to the production of many electronics. The US president accused Beijing of becoming very hostile and trying to hold the world captive.

China processes around 90% of the world's rare earths, which go into everything from solar panels to smartphones, making supply of them to US manufacturers a key bargaining chip.

Bessent also said a deal had been agreed on video-sharing platform TikTok's US arm, with Trump and Xi left to consummate that transaction on Thursday.

On Sunday, Washington also announced a slew of trade deals with Malaysia and Cambodia and framework agreements with Thailand and Vietnam. The region, which is heavily dependent on trade with the US, is among the hardest hit by Trump's tariffs.

Trump also announced framework agreements for the US to trade more goods with Cambodia and Thailand, emphasizing America's role as a strong partner in the region.